Having the ability to add Escalation Status custom field allows you to display the escalation status where you choose within the issue. The custom field also gives you the ability to search for issues when reporting.

Searching issues based on Escalation Status

The Escalation status custom field allows you to search for issues using JQL. The field can be one of 

project = SO and "Escalation Status"=Escalated

Adding the Escalation Status custom field to your Issue display